Wednesday, April 20, 2011

Gold Breaks $1,500 as US Gold (UXG) (GSS) (GFI) (AEM) Close Mixed

After blowing past the $1,500 an ounce mark on Tuesday, gold prices settled just under the important psychological barrier at $1,495.10, as gold miners Golden Star Resources (AMEX:GSS), US Gold (AMEX:UXG), Gold Fields (NYSE:GFI) and Agnico-Eagle (NYSE:AEM) closed mixed on the day.

Gold prices settled just below $1,500 an ounce after hitting that level earlier Tuesday's session, helped by a weaker dollar.

The gold contract for June delivery rose $2.20 to settle at $1,495.10 an ounce, shy of its all-time and daily high of $1,500.50 an ounce. Spot gold prices dropped 50 cents, to close at $1,495.90 an ounce.

Silver prices for May delivery climbed almost a dollar to settle at $43.91.

Most of this is based upon the collapsing U.S. dollar, which pulled back again today, the tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, inflation concerns and consequences of the Japanese earthquake.

Add to that the warning from rating agency S&P that the U.S. could have its debt downgraded if it doesn't deal with the growing debt crisis and you have a weak macroeconomic outlook favoring gold and other commodities.

Agnico-Eagle closed Tuesday at $66.98, gaining $3.38, or 5.31 percent. Gold Fields ended the session at $17.68, up $0.14, or 0.80 percent. US Gold closed at $9.16, rising $0.01, or 0.11 percent. Golden Star Resources closed the day at $2.95, falling $0.05, or 1.67 percent.

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